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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (48945)	8/6/1999 9:31:00 AM
From: BigBull	Read Replies (1) \| Respond to of 95453

From Russia with LOVE! This should help mitigate increased production from Nigeria and Iraq. Bloomberg Energy Fri, 06 Aug 1999, 9:23am EDT 8/6 6:40 Crude Oil Rises to 21-Month High as Russian Cuts Expected to Reduce Glut By Ragulan Sriskanthan Crude Oil Rises as Russian Cutbacks Expected to Reduce Glut London, Aug. 6 (Bloomberg) -- Crude oil rose to a 21-month high as Russia's decision to limit fuel exports until at least the end of next month, bolstered optimism refineries elsewhere will have to process more oil, reducing a glut. Exporters' output cuts have already reduced U.S. oil inventories by 5 percent since March, when the production cuts were agreed, and lifted oil prices 80 percent this year. ''Russia could really send the market a lot higher,'' said Kevin Blemkin, a broker with Cannon Bridge Corp. Ltd. Oil prices could exceed $20.50 a barrel if the Russian export restrictions persist as planned, he said. Brent crude oil for September delivery on London's International Petroleum Exchange rose as much as 23 cents, or 1.2 percent, to $20.03 a barrel, its highest level since Nov. 14, 1997. September crude on the New York Mercantile Exchange rose as much as 14 cents to $20.70 a barrel in electronic trading. Russia's move to stop gasoline exports and limit exports of diesel and fuel oil is aimed at ensuring adequate domestic supplies. The export cutback is expected to force refineries elsewhere to step up production of these fuels, running down their oil supplies in the process. For now, fuel oil exports will be limited to 32 percent of output, while diesel fuel shipments will be lowered to 28 percent of production. These restrictions could be eased in October, depending on the state of domestic demand, according to Fuel and Energy Minister Viktor Kalyuzhny. Russia exported 258,600 tons of gasoline, 2.26 million tons of diesel fuel and 2.53 million tons of fuel oil -- respectively, 13 percent, 58 percent and 62 percent of output -- in May, the last month for which the government has released export figures, the State Statistics Committee said. -------------------------------------------------------------------------------- © Copyright 1999, Bloomberg L.P. All Rights Reserved.